The Blast Ethereum Layer 2 network has experienced a significant decline in its market position, raising concerns within the DeFi community. What was once considered promising for scaling Ethereum now faces a bleak future.
Sharp Decline in Total Value Locked
The Blast Network has seen a sharp decline in its Total Value Locked (TVL), which fell to just $67 million in August 2025, a 97% drop from its peak of $2.2 billion in June 2024. This drastic change marks falling confidence and liquidity, indicating instability in the DeFi ecosystem.
Waning Engagement and Communication Issues
One of the most concerning aspects of Blast’s decline is the prolonged silence in official channels. The project has not released updates for three months, causing dissatisfaction among users. Regular updates and open dialogue about development progress are essential to maintain user trust. The absence of new information has raised doubts about the project's future and its commitment to development.
Bridged TVL and Remaining Activity
Despite the significant decline in its overall TVL, Blast still maintains a bridged TVL of around $351 million, largely from native tokens and contributions from other platforms. While this figure indicates that the network has not entirely vanished, the chances of regaining a strong market position without clear development plans appear slim.
The Blast network is facing critical challenges, including a sharp decline in trust and a lack of active communication with users. However, there remains hope for recovery if the team initiates new developments.
